The new SEC chair, Paul S. Atkins, launched Project Crypto, a reform for the US market operating on Blockchain.
🔍 5 Main Focuses of Project Crypto
🏛️ 1. Onshoring Crypto
Allowing crypto projects to create official entities like LLC (Limited Liability Company) within the United States — not through foreign foundations like in Switzerland, the Virgin Islands, etc.
📌 Goal:
- Bringing back crypto projects to the US
- Providing legal clarity and security for developers & investors
- Cutting bureaucracy and complicated legal structures
Example:
Instead of creating a foundation in Cayman to issue tokens, startups can directly create an LLC in the US and conduct fundraising legally.
🔐 2. Self-Custody & Custodian Options.
Users are allowed to store their own crypto assets (self-custody), and freely choose who their custodian is, including non-bank and new companies.
📌 Goal:
- Eliminating the practice of 'Chokepoint 2.0' (where the government limits who can be a custodian)
- Encouraging healthy competition among custody providers
- Supporting user financial freedom and security
Example:
The community can use hardware wallets (like Ledger), or choose private custodian providers — not necessarily through large institutions like banks or Coinbase.
📄 3. Simple & Integrated License.
Simplifying the licensing system by providing a single flexible license that can be used for various activities: trading, lending, staking, etc.
📌 Goal:
- Facilitating startups to enter the financial sector
- Reducing regulatory barriers
- Enhancing innovation and competition among players
Example:
Instead of having to manage 3–4 separate licenses, an app only needs 1 license to legally provide all DeFi services in the US.
🛠️ 4. Acceptance of Onchain Software (DeFi + CeFi).
Blockchain-based software — whether decentralized (DeFi) or centralized (CeFi) — can be legally used by institutions and official financial services.
📌 Goal:
- Bridging the world of TradFi (traditional finance) and on-chain
- Expanding the use of smart contracts by institutions
- Providing legal recognition for DeFi protocols
Example:
Banks or investment platforms can use Uniswap, Aave, or other dApp services as part of their official operations.
🧪 5. Sandbox for Startup Experiments.
Providing a regulatory sandbox where startups can test technology and issue tokens without fear of breaking the law.
📌 Goal:
- Encouraging innovation while remaining supervised
- Providing space for literacy and validation
- Avoiding criminalization of developing projects
Example:
A team wants to create an NFT-based loyalty token → can test it in the sandbox first without needing to register as a formal security.
🔚 Conclusion:
These five points collectively show that Project Crypto is the SEC's new direction to make the US a center for crypto innovation with more realistic, inclusive, and technology-friendly regulations.
This news is quite bullish, how can the market still be in the red? Share your opinion in the comments 👇
